Centurion Bank's 2:5 rights opens on Aug 24

The Rs 90.8 crore rights issue of Centurion Bank will open on August 24, and will close on September 22.

The lead managers to the issue is JM Morgan Stanley.

Post-issue, the bank's capital adequacy ratio (CAR) will increase to 9.3 per cent from 9 per cent.

The bank will offer shareholders two shares for every five held on the record date, which was set earlier at July 23, at Rs 4 per share, said the bank.

After the rights issue, the bank will meet the Reserve Bank of India (RBI)-stipulated CAR level, the bank added.

The rights issue is in addition to the Rs 154 crore of equity capital infusion in February 2004 by a group of investors, including BankMuscat, Keppel Corporation, Sabre Capital and Asian Development Bank (ADB).

The bank has raised Rs 43 crore as Tier-II capital in June, while it has securitised assets worth Rs 58 crore, said Centurion Bank chief operating officer Anil Jaggia.

As per RBI guidelines, the private bank can further raise Rs 45 crore as tier-II capital, he added.

BankMuscat, the major shareholder in the bank, has said it will fully exercise its rights option and participate to the total extent of its shareholding in the rights issue, along with other major investors.

BankMuscat holds a 33 per cent stake in Centurion, a 4.07 per cent stake with ADB, around 14.45 per cent with Keppel and Sabre at 7.82 per cent.